What was the cost of revenues for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 18,837,743 | |
| Depreciation and amortization | | 11,307,800 | 10,597,574 | | | Total operating expenses | | 31,830,178 | 29,435,317 | | | Loss from operations | | (7,233,577) | (8,872,021) | | | Other income (expense): | | | | | | Interest expense | | (5,506,427) | (3,821,499) | | | Gain on sale of unconsolidated subsidiary | | - | 1,025,637 | | | Other income (expense) | | (204,868) | (51,463) | | | Total other expense, net | | (5,711,295) | (2,847,325) | | | Loss before income taxes | | (12,944,872) | (11,719,346) | | | Income tax benefit (provision) | | (765,698) | 1,280,676 | | | Net loss | Ś | (13,710,570) | $ (10,438,670) | |
| For the | he ) | ears/ | End | ed D | ecemi | ber | 31. |
|---|---|---|---|---|---|---|---|
| --------- | ------ | ------- | ----- | ------ | ------- | ----- | ----- |
| Revenues | $ | 34,597,657 | $ 26,026,524 |
|---|
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the cost of revenues for the year ending December 31, 2022, was $10,001,056. For the period ending December 31, 2021, the cost of revenues was $5,463,228. This represents the direct costs associated with providing the services and products that generate 1 800 Packouts's revenue.
Understanding the cost of revenues is crucial for a prospective franchisee because it directly impacts the gross profit margin. A higher cost of revenues can reduce profitability, while a lower cost of revenues can increase it. Monitoring these figures over time helps in assessing the efficiency of operations and the ability to manage expenses related to service delivery and product sales.
Prospective franchisees should analyze these figures in conjunction with the revenue figures to understand the overall financial health and profitability trends of 1 800 Packouts. It's also important to compare these costs with industry benchmarks to evaluate how efficiently 1 800 Packouts manages its direct costs compared to its competitors. This information can inform business planning and financial projections for a new franchise location.